TRADER dies for the metal? Four simple criterion for the selection of profitable signals.
Probably the most
the famous line from Gounod's "Faust" sounds in the aria Mephistopheles "People are dying
for the metal. " In the previous article, sharing some of my observations on
subscriptions to trading signals via MT4 and MT5 platforms (remember? tab
"Signals" at the bottom of the terminal), I suggested that subscribers often choose
signal solely on its profitability, completely forgetting about the risks.
So what is next? Really
what follows is what he sang Mephistopheles?
To be
fair, of course, everything is not so tragic. First, the signal for selecting
themselves, can be guided not only by the popularity rating among
subscribers, but also to the rating that offers mql5.com portal itself. this rating
based on more than three dozen indicators, although the formula for calculating it
the creators of the secretive and hidden behind seven locks, which naturally causes
displeasure of certain skeptics, who do not want to trust someone's word, and
willing to just dig themselves.
Well, him and all the cards in
hands - individually all three dozen parameters of each signal
available to anyone, and in the online mode. Want - to make his formula, and you want
- just studied and analyzed, and signs.
Personally, I do not ship
himself all this great lot of numbers, and guided only by 4 indicators:
- deposit growth,
in% (here, I think, no need to explain anything - the higher it is, the better)
- maximum
drawdown, again in% of the deposit (here, too, it is clear - the less, the
better),
- lifetime
signal
- and stability
work.
Term life - very
an important indicator. If otranzhirovat signals presented at mql5 on this indicator, it is clearly seen that
the longer the signal lives, the less the average monthly income. Thus, for signals
with lifespan of more than 100 weeks, the rate is usually in the range of
from minus 10% to plus 10%. Of course, there are exceptions, but most often it happens.
On the other hand,
possible to isolate another group of signals, which shows just phenomenal
profitability in the hundreds or thousands of percent, the peak of which falls on life
20-40-th week, and then ... you can once again listen to the aria Mephistopheles.
It is in order,
that this did not happen, I propose to use a fourth of the proposed
criteria, which I call stability. If someone likes more
sounding terms, it can be called a dispersion of returns, the essence remains the
change. And it is to give us a clear result
What is the profit earned on a particular signal - happy
chance, luck or a single high-quality, thought-out trading strategy.
Only one
a vivid example (not to engage in any advertising or anti-advertising, specific
Signal names will not give). So:
At the time of writing
this material deposit on a signal increase of X% in 2400 and it is only 20
weeks! Impressive. Drawdown under this yields is also not inspire fears -
only some 15%. But if you look at the monthly rate of return, here we
We see the following picture: January - plus 1,176%, February - plus 85% in March - plus 21%
April - minus 7%, in May - minus 6%.
I do not know how anyone,
but I would not expect here a stable income - a deviation from the
the expectation on both sides in this case may be about
400%, and calculate the efficiency of such an investment is virtually impossible.
for comparison
another signal. Term life is almost the same - 21 weeks, maximum drawdown,
as the previous - 14%, but deposit growth at 10 times less - "only"
115%. In this case, the monthly rate of return
It is as follows: January - plus 9%, February - plus 15% in March - plus 22%, April -
plus 20%, in May - plus 15%. I think, here and without calculations show that in June, and
Further the subscriber may calculate the profit in the range of from 10 to 20%.
Some of us
It prefers the risk and adrenaline, someone - peace and stability. I do not
lazy and using a mql5 statistics, he made simple calculations. It turned out
more than 7000 subscribers who use this service, the category of avid
profit incorrigible optimists two-thirds of us can be attributed. And only one-third
Subscriber carefully analyzed what was singing Mephistopheles.
Anyway,
good luck and so, and others.
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